In the first half of 2022, the price of wood in Latvia has experienced unprecedented fluctuations, starting with atypical price changes to unfulfillable foreign demand for Latvian wood, according to the information gathered by the experts of the largest forest auction system in Latvia \"E-silva\".<\/p>\n
Price fluctuations were closely related to the war in Ukraine and sanctions against Russia and Belarus.\u00a0At the beginning of the year, due to the war and sanctions, the demand for wood produced in Europe increased.\u00a0From the beginning of 2022 until April, the increase in the price of wood was observed for the assortment of all species.<\/p>\n
Latvian processors, in preparation for unusually high demand, also built up large stocks in warehouses.\u00a0However, under the influence of inflation, which greatly affects the construction activity, wood is no longer purchased in large quantities, but as much as is needed for the specific construction project until its completion.<\/p>\n
At the moment, the material is purchased very thoughtfully, besides, many construction projects are stopped and often new ones are not planned at all.\u00a0Logistical problems and the rise in fuel prices also do not contribute to the rapid emptying of warehouses.\u00a0Thus, in the first half of 2022, there were many uncertainties and unpredictable factors in the sawlog market.<\/p>\n
When the European Union sanctions came into effect, the export of Russian forest products to Europe was stopped in July.\u00a0Belarus and Russia were important suppliers of wood products throughout Europe for a long time, so especially in the 2nd quarter of 2022 there was a noticeable increase in foreign interest in Latvia to buy wood and wood chips.\u00a0The price of pulpwood even doubled within half a year.\u00a0Particularly large demand came from the Scandinavian countries, where Russia has been an important supplier of wood products until now.<\/p>\n
The first half of this year is also characterized by drastic changes in the price of energy wood in Latvia.\u00a0If the price of energy wood usually reaches its lowest point in May, this year the prices rose.\u00a0Energy wood chips became a significantly more profitable fuel than gas and oil.\u00a0Due to the increase in the price of gas, the interest in switching heating from gas to renewable energy sources, including wood chip boilers, also increased.<\/p>\n
Also, according to \"E-silva\" auction data, in the 2nd quarter of 2022, it can be seen that the demand for Latvian forest cuttings grew and for the owners, this was a profitable moment for the sale of cuttings due to the high price of technological wood.<\/p>\n
The price of sawlogs has experienced both an increase and a decrease<\/strong><\/p>\n The increase in the prices of softwood logs at the beginning of 2022 was mainly explained by the increase in the prices of pulpwood and firewood due to the increase in the demand for pulp and energy wood.\u00a0Consequently, the price of thin spruce and pine sawlogs also increased.<\/p>\n Belarus and Russia were important suppliers of wood products throughout Europe for a long time, but in connection with the war in Ukraine and the decision of several European countries to no longer purchase wood products from the aggressor countries, an increase in prices was observed at the beginning of the year.<\/p>\n However, in the 2nd quarter of 2022, the price of softwood sawlogs began to experience a slight price decline.\u00a0The highest average price of spruce thick sawlogs was observed in April, reaching 114.30 euros per cubic meter, while the average highest price of pine thick sawlogs in April was 125.23 euros per cubic meter.\u00a0Compared to the highest price point in April, the average price of thick spruce logs has fallen by 17% to 94.38 euros per cubic meter.\u00a0The average price of thick pine logs in July was 100.44 euros per cubic meter, which is a drop of almost 20% compared to April.<\/p>\n The drop in prices can be explained by the build-up in sawmills and warehouses, as well as general inflation, which has a direct impact on the increase in construction costs and the freezing of projects.\u00a0The price level of thin softwoods remained stable in the second half of the first half of the year, remaining at the same level throughout the second quarter - the average price of thin pine logs since April was 71.5 euros per cubic meter, while the average price of thin spruce logs in July was 68.38 euros per cubic meter.\u00a0The rise in prices in these segments at the beginning of the year was natural, as the demand for softwood assortments influences each other in order not to create a shortage of thin sawlogs in production.<\/p>\n The price of pulpwood has doubled for the assortment of all species<\/strong><\/p>\n In the 1st half of 2022, the price of pulpwood increased in all species and continues to rise, but it is not currently predictable when this increase will reach its highest point, as demand continues to rise.\u00a0For example, Finland, which is one of the world's largest cardboard and printing paper producing countries, is currently actively looking for new partners for the purchase of timber, as until now more than half of the timber required for production was imported from Russia.\u00a0The average price of spruce and pine pulpwood in July reached EUR 84.00 per cubic meter, which is an increase of 94% for spruce and 84% for pine compared to the price at the beginning of the year.\u00a0On the other hand, as a result of the increase in demand, the average price of birch pulpwood in Latvia has increased by as much as 101% during the last six months, reaching EUR 116.00 per cubic meter.<\/p>\n The price of birch grew throughout the first half of the year<\/strong><\/p>\n Although the 1st quarter of the year is not usually the buying season for birch wood, the price of birch veneer logs also experienced a sharp jump at the beginning of the year, increasing by 40%, which was closely related to the war in Ukraine and sanctions against Russia and Belarus.\u00a0Not so fast anymore, but still the average price of birch veneer logs continued to grow throughout the first half of the year.\u00a0In July, it reached 141.25 euros per cubic meter.<\/p>\n Likewise, the average price of birch containers experienced a serious price increase throughout the first half of the year and reached its highest point in July \u2013 124.48 euros per cubic meter, which is an increase of 79% compared to the beginning of the year.<\/p>","protected":false},"excerpt":{"rendered":" In the first half of 2022, the price of wood in Latvia has experienced unprecedented fluctuations, starting with atypical price changes to unfulfillable foreign demand for Latvian wood, according to the information gathered by the experts of the largest forest … Continue reading